AN ACT relating to the financial examination of insurers.
Amend KRS 304.2-210 to authorize the examination of each domestic insurer once every five years, rather than every three years; amend KRS 304.2-320 to require entities seeking a merger, acquisition, or other change of control to bear the cost of the public hearing notice; KRS 304.3-180 to prohibit a property and casualty insurer from using the same accountant for preparation of its audited financial statement for more than five consecutive years; amend KRS 304.3-242 to require insurers file an actuarial opinion summary in addition to the statement of actuarial opinion.

HCS - Retain original provisions except delete references to the National Association of Insurance Commissioners and substitute the appropriate financial examination statutory references in lieu thereof; provide that the same lead or coordinating partner, rather than the same accountant or partner, of an accounting firm shall not be responsible for preparing the audited financial statement for more than 5 consecutive years; add "gross negligence" to the acts of misconduct which would subject an appointed actuary to liability for damages; delete the provision that confidential and privileged information in the control of the Office of Insurance shall not be subject to public inspection, subpoena, discovery, or admissible as evidence in a private civil action, and insert in lieu thereof a provision that the confidentiality and privilege protections shall not extend to any nonregulatory person or entity holding the information.

SFA (1, E. Worley) - Create a new section of Subtitle 15 of KRS Chapter 304 to require the executive director of the Office of Insurance to promulgate regulations to develop a notice for use by life insurers for delivery to owners of a life insurance policy under specified conditions; require that the notice inform the owner of the available alternatives to lapse or surrender of a policy, including life settlements, and limit the required notice to only those policies with a net death benefit of $100,000 or greater.